AFC Industries Executive Vice President of North American Sales John Kovatch and Vice President of Marketing Joe Shoemaker joined host Eric Dudas on the July 14, 2026 episode of Fully Threaded Radio, the podcast produced by the FCH Sourcing Network, to discuss the rapid growth of data center construction and what it means for fastener and industrial supply chains.
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John Kovatch Executive Vice President, North American Sales |
Joe Shoemaker Vice President, Marketing |
The conversation covered the scale of current data center investment, the specific product categories driving demand, and how distributors are being asked to take on a larger role as data center operators race to build faster than ever before.
Data Center Construction Reaches Record Scale
Data center construction has expanded significantly in the past several years, driven largely by the growth of artificial intelligence. In 2025, spending on data center construction exceeded spending on residential housing construction in the United States. Approximately $500 billion is allocated for data center construction in 2026 alone, according to figures cited during the episode. An estimated 1,100 to 2,000 data centers are currently operating in the U.S., with several times that number in various stages of planning.
Kovatch noted that data centers have grown far larger and more complex than commonly understood, often spanning millions of square feet and requiring the same level of electrical and mechanical infrastructure as a small city.
Electrical and Cooling Infrastructure Drive Demand
According to Kovatch, a data center's electrical infrastructure alone includes 10 to 12 distinct categories where distributors supply components, including transformers, switch gear, generators, uninterrupted power supplies, lithium-ion batteries, and power distribution units. Because data centers require continuous uptime, most facilities also maintain redundant backup power systems, including large-scale diesel generators.
Cooling represents a second major infrastructure category. Kovatch and Shoemaker discussed how the heat generated by servers requires extensive cooling systems, including chillers, cold plates, HVAC equipment, and industrial piping and fittings.
Speed of Delivery Has Become a Primary Requirement
Both executives noted that data center customers are requesting products on significantly compressed timelines compared to traditional manufacturing sectors. Kovatch said customers are increasingly requesting product delivery before development cycles are complete, a shift from cost being the primary purchasing factor to speed and availability.
Shoemaker said this shift is affecting companies across industries, including longstanding AFC customers whose engineering teams are being asked to design components for data center applications outside their traditional core markets.
Distributors Positioned as Technical Resources
Kovatch and Shoemaker said data center companies are hiring procurement and supply chain staff at a rapid pace, many of whom are new to industrial sourcing. As a result, distributors are increasingly being asked to provide technical guidance in addition to products.
Shoemaker said AFC's marketing approach for this sector focuses on establishing trust with customers navigating supply chain challenges they have not previously encountered, given the unprecedented scale and speed of current data center construction.
Outlook
Kovatch said he expects elevated levels of data center construction to continue for approximately eight to ten years before supply chains catch up with current demand. Shoemaker added that broader investment in AI and related infrastructure suggests continued long-term demand for data center capacity.
Shoemaker is scheduled to speak on a data center-focused panel at the International Fastener Expo in Phoenix this October, moderated by Fully Threaded Radio host Eric Dudas.
Listen to the full episode on Fully Threaded Radio: Episode 229 – Sizzler